Public Cloud Computing: Can Your Business Live Without It?

Is cloud computing really here to stay, or is it just another technology fad?

The answer to that question remains to be seen; however, cloud computing can be beneficial to your business, but it can also be disastrous. It pays to know the pluses and the minuses, of the cloud equation.

First of all, let's define cloud computing. It is the delivery of computing services, as opposed to selling of computer products. In cloud computing the resources, data and software are "leased" or provided to end-users/companies as a service instead of a product. For example, the relationship between a person and the electricity bill (a utility) signifies the type of relationship with a cloud provider and customer, with the Internet being the "grid."

Cloud computing allows usage of software, access to data, data storage and services, computer processing power and other benefits. In cloud setups, the user or company doesn't necessarily have to know where the data center (the location delivering the services) is located. Oftentimes, users do not need to have technical savvy to utilize cloud computing services.

Privacy Concerns

Privacy remains a big issue in cloud services, since the provider of the cloud platform has access to any digital data and communications stored or served through the user and the providing (host) company. Data can be monitored with or without legal authorization, which creates skepticism amongst companies with sensitive financial documents and other sensitive or "secret" information.

Contractual Needs

When transitioning to cloud-based services, companies will need to shift from the dependence on their technical staff, to relying on the service provider to address issues and maintain proper operations and communication. To ensure obligations are met and a specific level of service is agreed upon, contracts are necessary. A contract must be created to formalize the duties and responsibilities of both parties, as well as the expectations and limitations of the service relationship.

Additionally, the contract should identify the issues and risks associated with a cloud-based platform and should spell-out a security policy to prevent breaches and exploits. Many contracts also include a clause that defines vendor management responsibilities.

Data Center Usage

With cloud computing, there is no physical server stored at the location of your company. The service is dependent on an actual data center at a centralized location. Some cloud providers may have more advanced and efficient infrastructure created to support their offerings, while other providers that are less-established may not have the same level of knowledge and efficiency.

Although many cloud service providers will not necessarily want you to know where they are physically located, knowing where your data is being stored is one step in identifying whether or not the company is up-to-task.

Security Breaches

Security flaws and breaches are a big risk when choosing cloud computing services. Some providers may be less of a risk when handling your data than other companies. It is important to remember that you are depending on a third party to handle your data, and are trusting your personal, financial, government, or other types of sensitive information with a provider who may not necessarily safeguard your data in the same way as you would.

The inability to control the data is a huge consideration when choosing a cloud-based platform for your business. Knowing what the provider has specifically put into place to protect your data is crucial, regardless of the length of time taken for due diligence.

Final Thoughts

For those not familiar with cloud computing, it consists of a variety of services. These can include:

Spam filtering services
Data Backup services
Software services (shared, hosted software)
CRM software
File sharing services
Firewall services
Managed hardware/software/network support
and many more…

If you are considering cloud computing for your business needs, keeping the above information in mind will help you make an informed decision when deciding if public cloud computing is right for your business.